Debt owed by company trading as another company

cinereus · 21 October 2019 at 1:16PM

Company A owes me a four figure sum from late 2018. I always dealt with them as Company A.

However, upon asking to have my debt paid off, they have told me that it was actually Company B all along. Company B was "trading as" Company A back in 2018. I had no way to know that this was the case.

Unfortunately Company B went into liquidation a few months ago and has no assets.

Does Company A really have no liability after allowing a failing Company B to trade under their name? Do I have any recourse at all?

jonesMUFCforever · 21 October 2019 at 7:38PM

What does it state either in your contract or any invoices received?

antrobus · 21 October 2019 at 8:51PM

A limited company may have one or more different names under which it trades, but a limited company cannot 'trade as' another limited company - they are two separate and distinct legal entities.

If you have invoiced a 'four figure sum' to 'Company A' and they have not paid, you sue Company A, no matter what they 'say'. I'm not convinced that the, 'it wasn't me, but that bloke over there' defence will work in court.

cinereus · 21 October 2019 at 9:07PM

antrobus wrote: »

A limited company may have one or more different names under which it trades, but a limited company cannot 'trade as' another limited company - they are two separate and distinct legal entities.

If you have invoiced a 'four figure sum' to 'Company A' and they have not paid, you sue Company A, no matter what they 'say'. I'm not convinced that the, 'it wasn't me, but that bloke over there' defence will work in court.

That's the issue. Despite the Business Names Act, they have been trading as the other company (minus the Ltd.) Seemingly with the permission of Company A. My problem is how this would work in small claims - given the insolvency I don't want to throw good money after bad.

jonesMUFCforever wrote: »

What does it state either in your contract or any invoices received?

All in the name/letterhead of Company A only, not mention whatsoever of Company B.

Brock_and_Roll · 22 October 2019 at 9:10AM

given the insolvency I don't want to throw good money after bad.

You have hit the nail on the head.....despite the obvious "naughtyness" if there is only going to be a few pence in the pound payout from the insolvency, it may not be worth it.

Proving that the directors broke companies law would also only be a Pyrrhic victory - perhaps a fine and a slap on the wrist but no cash for the OP.

All that said however, I would definitely put a claim in via MoneyClaimOnline....easyish to do and costs very little. You never know, might get a decent cheque a long way down the line.

Clive_Woody · 22 October 2019 at 2:34PM

cinereus wrote: »

All in the name/letterhead of Company A only, not mention whatsoever of Company B.

If your contract is with company A and invoices were this company then anything relating to company B is irrelevant. I would go ahead with a MoneyClaimOnline against Company A, as suggested as it is a minimal cost and might encourage them to stop playing silly sods.

cinereus · 5 November 2019 at 5:19PM

Brock_and_Roll wrote: »

given the insolvency I don't want to throw good money after bad.

You have hit the nail on the head.....despite the obvious "naughtyness" if there is only going to be a few pence in the pound payout from the insolvency, it may not be worth it.

Proving that the directors broke companies law would also only be a Pyrrhic victory - perhaps a fine and a slap on the wrist but no cash for the OP.

All that said however, I would definitely put a claim in via MoneyClaimOnline....easyish to do and costs very little. You never know, might get a decent cheque a long way down the line.

I've been told "Any company is able to trade under another businesses name, as long as they seek approval before doing so"

robber2 · 5 November 2019 at 5:56PM

cinereus wrote: »

I've been told "Any company is able to trade under another businesses name, as long as they seek approval before doing so"

Any limited company can 'trade as' pretty much any business name it chooses to but NOT under another Limited Company name.

Rob

cinereus · 5 November 2019 at 7:02PM

robber2 wrote: »

Any limited company can 'trade as' pretty much any business name it chooses to but NOT under another Limited Company name.

Rob

Even with permission?

I can't find the reference in legislation.

Ben8282 · 5 November 2019 at 10:09PM

This makes no sense. If all your dealings have been with company A and company A are still trading all the rest is nonsense. Take legal action against company A.